Is now a good time to buy euros and sell pounds?
Probably.
Today, the Pound to euro rate has risen to just under 1.20.
With the financial turmoil in Europe, the euro and pound rates are fluctuating wildly. Today is a good day, if you have pounds and you need to buy euros.
This could even be a good time to buy euros, even if you don’t need them until January, February, or any month next year. We have a way for you to take advantage of the current exchange rate by just placing a 10% deposit. All you need to do after you’ve fixed today’s rate and placed a deposit, is pay the 90% balance on the agreed date next year.
We will keep to the agreed rate today, even if the rate has dropped substantially.
This is called a forward contract. Many businesses use this for good reason. But it’s just as good for private clients.
For example:
- You are looking to exchange £20,000 into euros.
- The rate offered may be 1.19 euros to a Pound. If this is the case, you would get €23,800.
- However, if the rate drops to 1.10 in January, when you may have to buy your euros. You would get just €22,000.
- This represents a real loss of €1,800 when all you had to do was place just £2,000 down as a deposit and fix the rate at 1.19.
Please call us on 01480 458400 to discuss this option.
This example does not constitute an offer.
